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How to get the best five year fixed rate bond

Start by comparing as many accounts as possible by following these three tips:

1.

Look for the best interest rate: The higher the rate the more interest you will earn

2.

Check the withdrawal rules: Some bonds charge you for withdrawing early or restrict your access completely, so check the terms and conditions before opening

3.

Make sure the account you choose is protected: Most companies protect your funds up to £85,000 under the Financial Services Compensation Scheme (FSCS) or have their own compensation schemes to cover you

How does a fixed bond work?

They tie your money up for five years from the date you open the account, and cannot be accessed until the maturity date.

For example, if you open a five year fixed term bond on 30th March 2017, you will have to wait until 30th March 2022 before you can access your money again.

Most fixed rate bonds will charge you an interest penalty if you try to withdraw your money, and you will be expected to close the whole bond down.

There are also limited issue bonds that have a set maturity date regardless of when you open the account.

How much do you need to open a five year bond?

You can open a five year bond from as little as £10, but most require you to deposit a much larger amount to get started. Our table shows you how much you need to open each five year bond.

Some bonds let you add more money for a set time, like 14 or 20 days after you open it, but others only allow one opening deposit, so if you want the flexibility to add more funds over time then a fixed bond may not be the best option for you.

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money.co.uk is a trading name of Dot Zinc Limited, registered in England (4093922) and authorised and regulated by the Financial Conduct Authority (415689). Our registered address is: The Cooperage, 5 Copper Row, London, England, SE1 2LH. We are classed as a credit broker for consumer credit, not a lender.